Anger at Birmingham city council's £20m loan for Edgbaston plan

Ten residents associations and neighbourhood forums in south Birmingham are demanding that the city cabinet reverses its decision to lend Warwickshire County Cricket club £20 million toward the cost of major improvements to the Edgbaston test match ground.

Ten residents associations and neighbourhood forums in south Birmingham are demanding that the city cabinet reverses its decision to lend Warwickshire County Cricket club £20 million toward the cost of major improvements to the Edgbaston test match ground.

In an unusual show of strength, chairmen of the groups involved have written to councillors condemning what they say is a financially risky project by the club based on a “dubious” business case.

Cabinet members are due to reconsider the loan after a scrutiny committee demanded a re-think.

The club has already scaled down some elements of a £32 million expansion scheme after the council planning committee refused to give approval.

Proposals for permanent floodlighting, new stands and pavilion, media centre and corporate hospitality facilities remain in the planning application, but an adjoining development of houses, flats, hotels and leisure facilities has been scaled down in an attempt to meet residents’ objections about noise and increased traffic.

In their letter, the community groups quote an analysis by Deloitte carried out for the council which raised doubts about the club’s forecast for increased income from test matches, international matches and hospitality once the ground improvements are in place.

Describing the council loan as “extremely concerning and highly questionable”, the letter says that WCCC will face difficulties in repaying the 20 year loan – a claim vehemently denied by the club.

The letter adds: “As guardians of the public purse, we would consider that Birmingham City Council is obliged to disclose the conditions of the loan.

“We understand that Deloitte has already expressed grave concerns about the mid to long-term viability of the plan.

“The business case and Deloitte’s report should be made public, given the provenance of the funding.”

The groups also demand greater “transparency and public consultation” by the council over the loan.

They add: “There is little doubt that many community schemes and initiatives could be identified that would make infinitely better use of these funds, and which would manifestly and directly benefit a much wider community.

“Warwickshire County Cricket Club is a commercial organisation, fiscal support of which should not come from the civic purse.

“To bankroll a financially risky project which would forever disfigure the unique sylvan landscape and blight the lives of thousands of residents within a wide radius of the ground, shows a serious disregard for the key principles of good neighbourliness, democracy and standards.”

Both the club and the council argue that the importance to Birmingham of continuing to stage test matches warrants a loan from public funds.